1. Canadian Market Opportunity Research
with Venue Marketing Trends & Event Producer Requirements
Halifax June 2013
Michael Hughes
Managing Director Research & Consulting
Red 7 Media Research & Consulting / Access Intelligence, LLC

2. Objectives Market Opportunity for Canadian Convention Centres
Centre Marketing Trends
Event Producer Trends & Centre Requirements

3. Market Opportunity for Canadian Convention Centres

4. About the Canadian Market Opportunity Study
Goal: Estimate the total market size opportunity related to conventions, exhibitions and meetings for Canadian convention centres.
Total realistic, addressable market for association conventions, exhibitions, meetings and other types of events important to convention centres.
No organization knows the true size of the convention, exhibition, meetings and events industry.
Sources:
CSAE
ICCA
Recent R7M Surveys of Event Producers
Recent R7M Surveys of Convention Centre Management
MPI
TSNN
Red 7 Media Research & Consulting
EXPO Magazine
Other sources

5. Key Findings
6,062
The total event and meeting marketing opportunity for Canadian Convention Centres, mainly associations.
2,205
International events tracked by ICCA (included in the 6,062 figure). Many of these may only book every 20 to 30 years or longer.
193
Major U.S. association conventions that book or consider rotating to Canada within a ten-year or longer window (included in 6,062 estimate).
3,362
Other mainly local events (not included in the primary 6,062 market opportunity figure).

6. Conventions, Exhibitions & Meetings Market Size: Market Opportunity for Canada
Event Categories
Canada Opportunity
Notes
Canadian-Based Association Conventions and Conferences
3,837
CSAE member count multiplied by 3 events.
U.S.-Based Association Conventions (Possible for Canada)
193
Based on surveys about 20% can book in Canada and other countries, although only about 2.5% book Canada annually.
International Association Conventions, Congresses and Conferences (Possible for Canada)
2,205
255 (or 1.2%) booked Canada in 2011; 65% of these events are held in Europe or rotate within Asian/Pacific region; about 30% are held in convention centres.
Canadian Exhibitions & Trade Shows (For-Profits, Excluding Associations)
200
Events run mainly by for-profit event organizers, excluding associations; about 400 are held in Canada annually (but 50% are associations).
U.S Exhibitions & Trade Shows (For-Profits, Excluding Associations)
300
20% of U.S. exhibitions and trade shows say they technically can book Canada.
Sub-Total
6,735
% Overlap Assumption
-10%
Total Opportunity
6,062

7. Conventions, Exhibitions & Meetings Market Size: Market Opportunity for Canada – Total Number of Events %

8. Notes on International-Based Association Figures (ICCA Data)
According to ICCA, in 2011 there were 255 major international association meetings held in Canada. This 255 figure equates to 1.2% of ICCA’s 21,000 association events the can rotate to various countries worldwide.
759 major international association meetings were held in the U.S. in 2011.
55% of these international association events rotate within Europe and an additional 10% rotate within the Asia/Pacific region.
35% of these 21,000 events may rotate to or within the rest of the world, including North America.
30% book convention centres.
Most of these ICCA events may have very long rotation cycles and periods, and they also vary significantly in size:
Average attendees: 535
30% are held in convention centres; 50% in hotels
59% of ICCA events are run by groups with headquarters based in Europe

9. What the Market Opportunity Information Means & How to Use
Marketing priorities
Benchmarking
Communications
Key Questions: What is the importance of the following to your venues? How realistic is growing share in these sectors?
Associations – international, national and regional
True International meetings and events (e.g., ICCA-tracked)
Canadian exhibitions and trade shows; national and regional
U.S. exhibitions and trade shows
Local and regional events

10. Other, Local Events & MPI Canadian Chapter Member Counts
Other Events
Overall # of Events
Other Canadian Events – Mainly Local Events & Banquets, etc.
3,362
MPI Canadian Chapters
Est. Meeting Planner Members
Atlantic Canada 29
British Columbia
123
Greater Calgary 49
Greater Edmonton 40
Manitoba 22
Montreal and Quebec 81
Ottawa
134
Toronto
295
Total
772
Source: R7M Canadian Convention Centre Surveys; MPI

11. Canadian Conventions & Exhibitions/Tradeshows Gross Square Footage Requirements
75% of Canadian conventions and exhibitions/tradeshows need up to 200,000 gross square feet of exhibit space.
Source: Red 7 Media Research & Consulting

12. Canadian & U.S. Convention Centre Capacity & Demand Comparison
Canada has 10% of the total U.S. and Canadian convention centre and exhibition hall capacity, but 14% of the major convention, exhibition and international meeting bookings.
Canada
U.S.
Total %
Canadian
# Convention Centres 41
429
470
8.7%
Total Exhibition Space SF
9.7 mil
82.1 mil
91.9 mil
10.6%
U.S. & Canadian Total Conventions, Exhibitions & Meetings Bookings Comparison Estimate -- % Booked in Canada
14%
Source: Red 7 Media Research & Consulting

13. Convention Centre Marketing

14. How Sales & Marketing is Changing – Canadian Centers
The centre marketing focus is to switch tactics – understood to mean more digital and in-person and event marketing – and pursuing other markets and types of events and groups.
Source: AIPC, Red 7 Media Research & Consulting

15. North American Convention Centre & Major Hotel Supply Growth – Total Exhibition Space
Increases in exhibition space supply have dropped of dramatically. But there are many key projects under development and in the pipeline…
Source: Red 7 Media Research & Consulting

16. Convention Centre Projects in North America – Partial List
New 350,000 sq. ft. Nashville Music City Convention Center just opened.
Cleveland Medical Mart & Convention Center -- new permanent medical mart “showrooms” next to new 300,000+ sq. ft. convention center to open this year.
San Diego Convention Center – 200,000+ gross sq. ft. exhibit space and ballroom expansion.
Las Vegas Convention Center -- embarking on long delayed major renovation and upgrade project.
Los Angeles Convention Center – new 200,000 sq. ft. hall to replace similar sized hall area to make way for 68,000-seat “Farmers Arena”.
Anaheim Convention Center – building, renovating 100,000 “Grand Plaza” outdoor space.
Moscone Center – planning to add 200,000 sq. ft. of exhibition and meeting space.
Boston Convention & Exhibition Center – considering expansion and renovation and new hotel.
Javits Center New York -- adding about 100,000 sq. ft. of exhibit space and service area.
New Orleans Ernest N. Morial Convention Center -- recent renovation; looking at new HQ hotel.
Miami Beach Convention Center – considering major area redeployment with top real estate developers.
Metro Toronto Convention Centre considering major mixed use development with hotels and casino.
Source: Red 7 Media Research & Consulting

17. Event Producer Trends & Venue Requirements

18. Top Event Producer Issues & Concerns
Attendance related areas dominate the focus of event management today.
Source: Red 7 Media Research & Consulting

19. How Attendees are Changing, Say Event Producers
“A younger demographic and they want to get most of their information online or through social media."
"Attendees are asking for more content, and are better informed."
"They book much closer to the event. Bring fewer people, but more key personnel and they stay a shorter period of time."
"Harder to capture. Very price sensitive. Required to justify attendance."
“We are seeing fewer attendees, but higher quality in role in the purchasing decision."
"Need to market differently to several separate age groups."
"They are more focused on getting the most done in the least amount of time.”

20. Where Event Producers are Investing to Better Serve Attendees
A key more recent trend is the explosion of content and information being developed by events. This is driving need for more venue bandwidth, access points and electrical charging outlets/ and areas.
Source: Red 7 Media Research & Consulting

21. Event Management = Event Content Development
Event management has become about managing more content and information . There are over 35 different areas and types of event content, including:
Archived event information
Award events
Social media, digital communities
Educational sessions
E-newsletters
Entertainment
Exhibits, environments and displays
Keynotes
Mobile apps
Networking events
Publications
User-generated content
Video
Virtual events, webinars/webcasts
Post-event survey and evaluations

22. Evolution of Events – A Few Years Ago…
ENGAGEMENT
TIME
Source: ActiveNetwork

23. Events Today – Content Development Throughout Event Cycle
ENGAGEMENT
TIME
Source: ActiveNetwork; Red 7 Media Research & Consulting

24. Content Areas Show Producers are Focusing On, Doing More
Event floor layout, design, ambiance, “environment”, aesthetics, “look and feel” is content too. What can venues do to help add more value?
Source: Red 7 Media Research & Consulting

25. Content Community Connected Collaborate Communicate
Today’s Event Industry Tag-Lines, Buzz Words & Themes
Content
Community
Connected
Collaborate
Communicate

26. How Event Management Convention Centre Needs are Changing
Primary
Secondary
Source: Red 7 Media Research & Consulting

27. Type of Attendance Marketing Support – CVBs & Convention Centres in North America
Increasingly, both CVBs and venues are adding more value with promotional assistance.
CVBs
Centres
Public relations support
91%
71%
Liaison with city, state or regional groups or government
88%
64%
Adding event information to the DMO and/or venue websites
74%
Entertainment, sports, cultural event or facility discounts
50%
s to potential local attendees
67%
29%
Airport signage and around the destination before the event
Cash payments/rebates/marketing support fees
48%
21%
Travel and/or lodging incentives, discounts
45%
Hotel discounts/rebates
55%
14%
Mailings to potential local attendees
33%
Event advertisements paid by the DMO or venue
Assistance securing event speakers, keynoters 7%
Marketing to international attendees 0%
Source: DMAI, Red 7 Media Research & Consulting

28. Event Producers on How Their Business Practices are Changing
Long-term trend – more negotiations and requests for discounts and added value.
Related to Working with Centres
% Events
Increased negotiations with venues, hotels and CVBs
75%
Asking for more public relations assistance and outreach to city and regional leaders
44%
Focusing more on event design and ambiance
Requiring attendance promotion assistance
38%
Shorter booking windows, booking closer to the event dates
31%
Longer booking windows, booking further from the event dates
27%
Requiring higher-quality food and beverage
23%
Source: Red 7 Media Research & Consulting

29. Event Producers on How Convention Centres Can Help
“Make an effort to understand the audience and what is important/necessary for them.”
“Be flexible to accommodate our needs which may be different from the other market segments.”
“Offer suggestions/share ideas on what worked well with other like groups. Help promote the event to stakeholders in their local area.”
“Cross fertilize ideas from other sectors.”
Source: Red 7 Media Research & Consulting

30. Event Producers on How Convention Centres Can Help
“Reduce the component of hotel room reservations as a part of the equation. Hotels are not cooperating and continue to not give major price breaks despite bringing business to their attached or nearby convention centers.”
“Strengthen bandwidth and provide lower-priced/complimentary internet service.”
“Try to come up with a complete conference package including space, lodging, A/V, and F&B to minimize negotiation time and allow for savings through combined negotiation.”
Source: Red 7 Media Research & Consulting

31. Corporate Event & Experiential Marketing Budget Growth – Overall Industry Average
Event and experiential marketing budgets are growing much faster than the economy. In 2012, large companies with over $1 billion in total revenue increased their event spending by nearly 10%.
Source: Red 7 Media Research & Consulting

32. Conclusion
6,062 events -- total marketing opportunity for Canadian Convention Centres, mainly associations.
2,205 of these are “ICCA” events, although these may book Canada once every few decades.
75% of Canadian conventions and exhibitions/trade shows need up to 200,000 gross sq. ft. of exhibit space. And 88% need up to 300,000 gross sq. ft.
Main challenges are growing competition and air travel cost and capacity. Main opportunity is to pursue new market sectors.
Possible good sign for economy: corporate events and consumer shows are seen as good growth opportunities today.
Event producers – negotiating more; need more bandwidth; content explosion.

33. Q&A